[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 2651 Introduced in House (IH)] <DOC> 119th CONGRESS 1st Session H. R. 2651 To amend the Workforce Innovation and Opportunity Act to establish a State innovation demonstration authority. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES April 3, 2025 Mr. Owens introduced the following bill; which was referred to the Committee on Education and Workforce _______________________________________________________________________ A BILL To amend the Workforce Innovation and Opportunity Act to establish a State innovation demonstration authority. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``One Door to Work Act''. SEC. 2. STATE INNOVATION DEMONSTRATION AUTHORITY. Section 190 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3250) is amended to read as follows: ``SEC. 190. STATE INNOVATION DEMONSTRATION AUTHORITY. ``(a) Purpose.--The purpose of this section is to-- ``(1) authorize States to apply under this section on behalf of the entire State, or on behalf of a local area or a consortium of local areas in the State, to receive the allotments or allocations of the State or the local areas, respectively, for youth workforce investment activities and adult and dislocated worker employment and training activities under this Act, as a consolidated grant for 5 years for the purpose of carrying out a demonstration project to pursue innovative reforms to achieve better outcomes for jobseekers, employers, and taxpayers; and ``(2) require that rigorous evaluations be conducted to demonstrate if better outcomes and associated innovative reforms were achieved as a result of such demonstration projects. ``(b) General Authority.-- ``(1) Waivers and demonstration grant amounts.-- Notwithstanding any other provision of law, during the demonstration period applicable to a demonstration project approved for a State pursuant to subsection (d)(3), the Secretary shall comply with each of the following: ``(A) Waivers.--Subject to paragraph (2), waive for the State as a whole, or for the local area or the consortium of local areas in such State selected by the State to carry out such demonstration project, all the statutory and regulatory requirements of subtitle A and subtitle B. ``(B) Demonstration grant amounts.--For each fiscal year applicable to such demonstration period: ``(i) State as a whole.--In a case of a State approved to carry out a demonstration project under this section on behalf of the State as a whole, distribute as a consolidated sum to the State, for purposes of carrying out the project, the State's total allotment for such fiscal year under-- ``(I) subsections (b)(1)(C) and subsection (c) of section 127; ``(II) paragraphs (1)(B) and (2)(B) of section 132(b); and ``(III) section 132(c). ``(ii) Local area.--In a case of a local area selected by a State to carry out a demonstration project under this section, require the State to-- ``(I) distribute as a consolidated sum to the local board for such local area, for purposes of carrying out the project, the local area's allocation for such fiscal year under-- ``(aa) subsections (b) and (c) of section 128; and ``(bb) subsections (b) and (c) of section 133; or ``(II) if the local board of the local area enters into a written agreement with the State for the State to serve as the fiscal agent for the local board during the demonstration project, use the funds described in subclause (I) for purposes of carrying out the project on behalf of the local board. ``(iii) Consortium of local areas.--In a case of a consortium of local areas selected by a State to carry out a demonstration project under this section, require the State to-- ``(I) distribute as a consolidated sum to the consortium, for purposes of carrying out the project, the total amount of the allocations for the local areas in such consortium for such fiscal year under-- ``(aa) subsections (b) and (c) of section 128; and ``(bb) subsections (b) and (c) of section 133; or ``(II) if the consortium enters into a written agreement with the State for the State to serve as the fiscal agent for the consortium during the demonstration project, use the funds described in subclause (I) for purposes of carrying out the project on behalf of such consortium. ``(2) Exceptions.-- ``(A) In general.--A State, local area, or consortium of local areas carrying out a demonstration project under this section shall comply with statutory or regulatory requirements of this Act relating to-- ``(i) performance accountability and reporting, except as otherwise provided in this section; ``(ii) the membership of local or State boards in instances where a State carrying out a demonstration project will maintain the use of such boards during the demonstration period; and ``(iii) the priority of service described in section 134(c)(3)(E). ``(B) Applicability of defined terms.--In carrying out a demonstration project under this section, a State, local area, or consortium of local areas may only use a term defined in section 3 to describe an activity carried out under such demonstration project if the State, local area, or consortium of local areas gives such term the same meaning as such term is given under such section. ``(3) Authority for third-party evaluation.-- ``(A) In general.--Not later than 180 days after the first demonstration project is approved under this section, the Secretary shall contract with a third- party evaluator to conduct a rigorous evaluation of each demonstration project approved under this section. The evaluation shall-- ``(i) cover the 5-year period of each demonstration project; ``(ii) compare the employment and earnings outcomes of participants in activities carried out under the demonstration project to-- ``(I) the outcomes of similarly situated individuals that do not participate in such activities who are located in such State, local area, or a local area in such consortium; and ``(II) the outcomes of participants in activities under this chapter in the State, local area, or a local area in the consortium that was awarded a waiver prior to the award of such waiver; ``(iii) conduct a qualitative analysis that identifies any promising practices or innovative strategies that-- ``(I) would not have been conducted without the waiving of statutory or regulatory provisions through the demonstration project; and ``(II) lead to positive employment and earnings outcomes for the participants; and ``(iv) compare the outcomes for subclauses (I) and (II) of clause (ii) with respect to the subpopulations described in section 116(d)(2)(B). ``(B) Report.--Not later than 2 years after the fifth year of each demonstration project approved under this section, the Secretary shall submit to the Committee on Education and the Workforce of the House of Representatives and the Committee on Health, Education, Labor, and Pensions, the results of the evaluation of such conducted under this paragraph. ``(c) Demonstration Period; Limitations.-- ``(1) In general.--A demonstration project approved under this section for a State, local area, or consortium-- ``(A) shall be carried out for a 5-year demonstration period; and ``(B) may be renewed for an additional 5-year demonstration period, if the State, local area, or consortium-- ``(i) for each of the final 3 years of the preceding 5-year demonstration period, meets its expected levels of performance established under subsection (f)(1)(C); and ``(ii) on the final year of the preceding 5-year demonstration period, achieves a performance improvement of not less than an average of a 5-percent increase across all of the indicators of performance described in clauses (i) and (ii) of subsection (f)(1)(A), compared with-- ``(I) the highest level of performance for the corresponding indicators of performance, as described in subsection (f)(1)(B)(i) with respect to such State, for the most recent program year that ended prior to the beginning of the first year of the preceding 5-year demonstration period; or ``(II) the alternate baseline level of performance for the corresponding indicators of performance that is agreed upon between the State and the Secretary under subsection (f)(1)(B)(ii). ``(2) Limitations.-- ``(A) Demonstration period limitations.--For each 5-year demonstration period (including renewals of such period) the Secretary may not approve-- ``(i) more than 8 demonstration projects for States to carry out a demonstration project described in subsection (b)(1)(B)(i); and ``(ii) more than 8 demonstration projects for local areas (or consortia of local areas) to carry out a demonstration project described in clause (ii) or (iii) of subsection (b)(1)(B). ``(B) State limitations.--No more than 1 demonstration project may be approved under this section per State. For purposes of this subparagraph, a demonstration project described in clause (ii) or (iii) of subsection (b)(1)(B) approved for a local area or a consortium of local areas, respectively, in a State shall be considered a demonstration project approved under this section for the State. ``(d) Application.-- ``(1) In general.--To be eligible to carry out a demonstration project under this section, a State shall submit to the Secretary an application at such time and in such manner as the Secretary may reasonably require, and containing the information described in paragraph (2). ``(2) Content.--Each application submitted by a State under this subsection shall include the following: ``(A) A description of the demonstration project to be carried out under this section, including-- ``(i) whether the project will be carried out-- ``(I) by the State as a whole; ``(II) by a local area, and if so-- ``(aa) an identification of-- ``(AA) such local area; ``(BB) whether the local board for such local area is the fiscal agent for the project, or whether the local board has entered into a written agreement with the State for the State to serve as the fiscal agent during the project; and ``(bb) written verification from the local board for such local area that such local board agrees-- ``(AA) to carry out such project; and ``(BB) to the fiscal agent identified in item (aa)(BB); and ``(III) by a consortium of local areas in the State, and if so-- ``(aa) an identification of-- ``(AA) each local area that comprises the consortium; and ``(BB) the local area that will serve as the fiscal agent for the consortium during the project, or whether the consortium has entered into a written agreement with the State for the State to serve as the fiscal agent; and ``(bb) written verification from each local board of each local area identified in item (aa)(AA) that such local board agrees-- ``(AA) to carry out such project as a consortium; and ``(BB) to the fiscal agent for the consortium identified in item (aa)(BB); ``(ii) a description of the activities to be carried out under the project; and ``(iii) the goals the State, local area, or consortium intends to achieve through such activities, which shall be aligned with the purpose described in subsection (a). ``(B) A description of the performance outcomes the State, the local area, or consortium expects to achieve for such activities for each year of the demonstration period as described in subsection (f)(1). ``(C) A description of how the State, local area, or consortium consul